The Securities and Exchange Board of India (SEBI) announced on Tuesday that it has imposed a penalty of Rs 1 crore each on former CNBC Awaaz news anchor Pradeep Pandya and Alpesh Vasanji Furiya, who frequently appeared on the channel as an investment expert. Additionally, six others involved in the case have been fined Rs 10 lakh each.
SEBI has also barred all the individuals from participating in the market for five years. The regulator’s investigation revealed that Pandya and Furiya were involved in front-running and engaged in ‘buy-today-sell-tomorrow’ trades in coordination with their recommendations.
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The Securities and Exchange Board of India (SEBI), the country’s capital market regulator, has been busy on multiple fronts recently. Here’s a breakdown of their latest actions:
Taking Action Against Unregistered Activities:
- Targeting Illegal GDR issuances: SEBI issued notices demanding recovery of funds from individuals and a fund associated with Vikash Metal and Powar Ltd., Winsome Textile Industries Ltd., and Aqua Logistics Limited. These companies allegedly issued Global Depositary Receipts (GDRs) without proper registration. GDRs are a way for Indian companies to raise capital overseas. By cracking down on unregistered issuances, SEBI protects investors from potential scams.
- Focus on Investor Protection: In another case, SEBI banned a former television anchor and seven others from the securities market for five years. They were also fined for manipulative trading practices. This action sends a strong message that SEBI is committed to safeguarding investors from market manipulation.
Making Investing Easier for Everyone:
- Simplifying KYC norms: SEBI relaxed some Know Your Customer (KYC) norms, aiming to streamline the risk management framework. KYC involves verification of a client’s identity and financial situation. This move could make it easier for new investors to enter the market.
- Investor Certification on the Way: SEBI launched an investor certification exam initiative. This program aims to improve financial literacy by assessing an investor’s knowledge before they start trading. By equipping investors with better knowledge, SEBI hopes to minimize their risk and encourage responsible investment decisions.
- Protecting Demat Accounts and Mutual Fund Investments: SEBI scrapped a rule that previously allowed freezing Demat accounts and mutual fund folios (holdings) if no nominee was designated. This ensures investors’ holdings remain accessible even in the absence of a nominee, reducing unnecessary stress for investors and their families.
Other Developments:
- SEBI Recruitment Drive: The regulator is looking to expand its team and has announced recruitment for 49 officer positions. This move indicates SEBI’s commitment to strengthening its capacity to effectively regulate the capital markets.
- F&O Market Revamp on the Horizon: SEBI is considering changes to the rules governing the Futures & Options (F&O) segment. These proposed tweaks could potentially lead to a significant shift in the composition of stocks included in the F&O segment.
- Real Estate Asset Auction: Following a High Court order, SEBI will auction 22 properties belonging to seven companies in July. This move aims to recover dues from these companies.
Conclusion:
SEBI’s recent actions demonstrate a multi-pronged approach. They are actively pursuing unregistered activities to protect investors, while also introducing initiatives to simplify investment processes and enhance financial literacy. These efforts can contribute to a more robust and investor-friendly Indian capital market.